Explanatory Note

(This note is not part of the Order)

Part V of the Housing (Scotland) Act 2001 (“the 2001 Act”) provides for a new funding regime for the strategic housing functions of local authorities. Section 94 of the 2001 Act allows Scottish Ministers by order from a specified date to remove the application of sections 191 to 193 and 203(1) of the Housing (Scotland) Act 1987 (“the 1987 Act”) in relation to specified local authorities. Sections 191 to 193 of the 1987 Act impose a duty on Scottish Ministers to provide housing revenue grant to local authorities and section 203(1) of that Act places a corresponding duty on local authorities to maintain a housing revenue account.

Article 3 provides that from 1st April 2007, sections 191 to 193 and 203(1) of the 1987 Act cease to apply to Argyll and Bute Council and Comhairle nan Eilean Siar.

Article 4 provides that income and expenditure which would have been accounted for in the housing revenue account of these authorities, will, after 1st April 2007, be paid into the general fund.

Article 5 provides that each such local authority shall keep a separate accounting record of all buildings and land held on the housing revenue account prior to 1st April 2007 and income received on disposal of any such buildings or land.